NOTHING TO BE WRITTEN IN THIS MARGIN
CONFIDENTIAL
[Omit?]
and for explanation of important Government
policies and decisions.
4. It is indeed remarkable that in spite of the
Communist pressures to which the Colony has been
subjected its economic advance should continue at
so high a rate. Two years after the onset of
confrontation in 1967 the Colony is stronger than
ever. But as you recognise in paragraph 5 of
your Despatch, the present conditions of
relatively free international trade, on the
maintenance of which the health of your commerce
It
and industry and therefore of your public
finances depend, may suffer some erosion.
would be surprising if the spectacular growth of
your export trade did not generate pressures for
its restraint from some of your trading partners.
It is my earnest hope that such pressures can be
contained and that Hong Kong will notwithstanding
continue to benefit from the expansion of world
trade. In this connection I went also to say
that I attach great importance to continued, and
close, consultation and association between your
Government and H.M.G. in the United Kingdom in
the matter of international trade. There are
already some fieNs, such as the handling of
cotton textile negotiations where you have full
authority. In other fields it is certainly not
my intention that the special interests of
Hong Kong should be unnecessarily subordinated to
those of H.M.G. Nevertheless there are certain
important matters in which we have a common
interest and I believe that we must continue to
recognise this and to work as closely in harmony
as possible.
/5.
No
CONFIDENTIAL